Figure 18-4 Figure 18-4 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 18-4.The middle 20 percent of households
A) earn 20 percent of the society's total income.
B) earn 36 percent of the society's total income.
C) earn 48 percent of the society's total income.
D) earn 50 percent of the society's total income.

Question

Figure 18-4  Figure 18-4 shows the Lorenz curve for a hypothetical country.
-Refer to Figure 18-4.The middle 20 percent of households
A) earn 20 percent of the society's total income. 
B) earn 36 percent of the society's total income. 
C) earn 48 percent of the society's total income. 
D) earn 50 percent of the society's total income.

Quizplus · Accepted Answer

The middle 20 percent of households typically do not earn 20 percent of the society's total income due to income inequality. The correct answer is based on the assumption that the middle quintile earns a proportionate share of income, which is often less than 20 percent.

Figure 18-4 Figure 18-4 Shows the Lorenz Curve for a Hypothetical